The insurance industry plays a significant role in the management of risks for individuals and other stakeholders. An effective and sustainable insurance sector supports economic stability for individuals, organizations, and a nation’s economy as a whole. As risks and insurance products have become more complex, and risk management capabilities have improved, regulatory oversight of the insurance industry has evolved over the last decade to address these changes. A key part of this evolution has been the shift toward risk-based capital (RBC) management, which essentially measures capital requirements for insurers based on the risks inherent in their assets and liabilities, including interactions between different risk types.
Actuaries play a central role for insurers in many areas, and particularly in the assessment of liabilities and risk. With the movement to RBC, the need for actuarial capacity and expertise has increased. Actuarial calculations and processes are embedded in many of the risk-based calculations that support the RBC results. To assist carriers and regulators, this report summarizes insurance requirements across nine countries: India, Jordan, Kenya, Malaysia, Nigeria, Pakistan, Saudi Arabia, Sri Lanka, and the United Arab Emirates.
Main discussion points for each country include the following.
- Overview of the insurance market: Structure of the landscape
- Actuarial capacity and framework: Name of actuarial associations, and information on actuary function and qualifications
- Actuarial valuations: Life versus general insurers
- Solvency and capital framework: Current requirements and RBC
- Product pricing requirements: New products and regulatory review
- Additional provisions: Topics such as reinsurance, own risk solvency assessment, enterprise risk management, and asset liability management